When talking about LinkedIn it is very easy to understand the platform network effect and how this affect to each of the stakeholders around its ecosystem. At first, we need to establish all the players involved in the delivery of the service that LinkedIn gives as well as the business that affects and are affected by the others, creating a constant evolving relationship. Later on it is important to recognize how these stakeholders affect the platform or affected by it. * Professionals (looking): On one side of the platform the professionals are looking and searching for something, it can be a job opportunity, new business developments or simply stay in touch with people in a more professional way. * Professionals (finding): On the other side of the platform professionals are willing to find other professionals for different purposes. On this side of the platform are mostly recruiters, marketers and advertisers, and developers. * Direct stakeholders: We call these all the people involved on the value delivery, the software and hardware companies in charge of the database, the designers and the shareholders. * Competition: Competitors or substitutes are found in many different ways, they could be every media use for traditional recruiting advertising, specialized platforms for recruiting and connecting business developers such as monster, etc. Or even the new applications loaded on Facebook for job hunting. * Government: Principal issue about government in these social networks is related to data protection.
For describing the dynamics of the success in LinkedIn’s business model 5 characteristics were chosen: 1. Professional vs Social: when talking about professional matters people usually take it more seriously and are willing to pay more as they can see it as an investment. 2. Recency: Very accurate and up dated information but people don’t change jobs very frequently so they are not going into the web page every time...
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